GST DAILY – 437 : No SCN can be issued under Section 73 of CGST Act based on discrepancies identified if explanation was accepted by AO: HC

THE HON’BLE RAJASTHAN HIGH COURT IN THE CASE OF Goverdhandham Estate Pvt. Ltd. V/State of Rajasthan D.B, decided on 17-1-2024

 👉 Issue:-

✔️ Can revenue could be initiated proceedings under Section 73, once explanation was accepted?

👉 The Hon’ble High Court Judgement:-

✔️ Where petitioner, a hotel operator was issued notice under Section 61 alleging ineligible Input tax credit under section 17(5), despite accepting petitioner’s explanation with regard to said notice and issuing Form GST ASMT-12, revenue initiated proceedings under Section 73, since power under Section 73 could be invoked only when explanation offered was not satisfactory, once explanation was accepted, no further proceedings could be drawn, thus, show cause notice issued under section 73

Section 17 read with section 73 and section 61 of Central Goods And Services Tax Act, 2017